October 30, 2016 admin

Commissions & Incentives—Other—Body Shop

Expenses

COMMISSIONS & INCENTIVES—OTHER—BODY SHOP EXPENSE ACCOUNT
7820

ACCOUNT EXPLANATION
Commissions and incentives paid or accrued to body shop estimators or salespeople, not to include department managers, on the sale of body work or other items sold by the body shop. Includes incentives based on performance of the body shop.
TRANSACTIONS
  Jrnl. Dr. Cr.
  Commissions earned by estimators on body shop sales PR
    Commissions & Incentives—Body Shop 7820
      Accrued Payroll 2410
             
  Incentive pay earned by estimators on the accuracy of estimates on large jobs PR
    Commissions & Incentives—Body Shop 7820
      Accrued Payroll 2410
COMMENTS
  • Guaranteed minimum commissions paid but not earned through body shop sales should be charged to Account 7810, Salaries—Other—Body Shop.
  • Bonuses based on total dealership profit should be charged to Account 9550, Employee Bonuses.
  • Commissions, incentives, prizes, etc., paid to dealership employees are subject to withholding and should be recorded through the Payroll Journal. Tax counsel should be consulted as necessary.